Enter your original vehicle value, depreciation rate, and age of the vehicle into the calculator to determine your salvage value.

Salvage Value Calculation Formula

The following formula is used to calculate the salvage value of your vehicle.

Salvage Value = Original Value * (1 - Depreciation Rate / 100)^Vehicle Age

Variables:

  • Salvage Value is the estimated value of your vehicle after accounting for depreciation ($)
  • Original Value is the initial value of your vehicle ($)
  • Depreciation Rate is the annual percentage decrease in value (%)
  • Vehicle Age is the number of years the vehicle has been in use (years)

To calculate the salvage value, multiply the original value by the depreciation rate raised to the power of the vehicle age. This gives you the estimated value after depreciation.

What is Salvage Value Calculation?

Salvage value calculation refers to determining the residual value of a vehicle after it has been depreciated over its useful life. This process helps in understanding how much value remains in a vehicle, which is crucial for insurance claims, selling, or scrapping the vehicle. Knowing the salvage value is essential for making informed decisions regarding your vehicle’s financial aspects.

How to Calculate Salvage Value?

The following steps outline how to calculate the salvage value using